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“Select a sample from the list of additions and review the description on the invoice to confirm that they relate to capital expenditure items rather than repairs and maintenance: verifies existence.”
ma’am again i find this really strange! how does this process really test existence?
The invoice confirms that an asset has been purchase and therefore existed (at that point in time) rather than that an expense was occurred.
Of course that is not sufficient evidence that the asset STILL exists at the reporting date – the auditor would plan also to physically inspect.
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